Death Benefits and the Loss of a Spouse

Sometimes, the unthinkable occurs, and while it’s never a pleasant thing to have to consider, it is important for married couples to get their affairs in order in case of the loss of one of them.

This is especially true for those who are about to retire, as the plans you may or may not have opted into as you transitioned out of work could have lasting effects on the benefits a surviving spouse could receive. Retiring can certainly be overwhelming even without considering that possibility, but there are certain things you can do today that can lower the stress that you or your family will face when one of you passes away. This can reduce not only the worry about the inevitable but can reduce the amount of burden imposed on the survivors when the time comes.

There is a document you can access called Be Prepared for Life’s Events through the National Active and Retired Federal Employees Association which gives a run down on preparing to survive a loved one, including where to file the necessary information beforehand so that you’ll be able to look it up quickly, all the insurance contracts and website passwords one might need to access after you or your spouse passes away.

Things like outstanding loans or unresolved debt in your spouse’s name can come back and bite you hard if you aren’t able to access or at least be made aware of certain accounts that your loved one may have opened up.

And while putting all that information in a safe place for each other should be paramount, it is also wise to keep your benefits through your employer, such as life insurance, even throughout retirement. And if you are a federal employee also, your designations and beneficiaries will surely hang upon your partner’s death, so it’s wise to keep that in mind when filling out the paperwork.

As you sort through your and your partner’s joint paperwork, you’ll see how much there is to do: replacing shared accounts with accounts for you only, figuring out the new tax situation you’ll be in, and deducing which benefits you’re going to be eligible for. Usually, with FERS you have to option to take the death benefit as a single sum or get it paid out over the course of 3 years to help alleviate some of the tax stress it could put on you.

This would also be a period to reassess your own goals and plans for the future, including your housing situation and what you might need to not only take care of your late partner’s expenses financially but emotionally as well.